Special Gases – Opportunity or a Crowded S pace within MENA Region? Chris Street

1. Special Gases – Opportunity or a Crowded Space within MENA Region? Chris Street Chief Executive Scientific and Technical Gases

2. Chris Street – Background • 1983 – 1986 BSc. Mechanical Engineering + MBA • 1986 - 1991 Air Products – Speciality Gases Sales and Engineering • 1992 - 1997 Engineering Contracting for 5 years • 1998 - 2006 Air Liquide – Director Calgaz. Set up Calgaz in Europe, Middle East, Africa and Singapore Hub for Asia • 2007 Acquired controlling interest in StG • 2009 Took over as MD / Chief Executive

3. StG Today • Founded in 1996 • Manufacturers of Calibration Gas Mixtures in • refillable and Non-Refillable Cylinders • Sales to over 72 countries worldwide • Manufacturing Operations in UK and Dubai • Winner of 2013 – Sentinel “International Trade Award” • Markets • Marine, Gas Detection, Oil, Gas, Petrochemical, Laboratory & Analytical • Global Distribution Hubs • UK, Rotterdam, Dubai, Shanghai, Singapore, • Rio, Sydney, Perth and Houston

4. What do we mean by Special Gas in MENA Region? • High Purity Gases – He, Ar, H2 N2 (5.0 to 6.0 grades) • Liquid Helium • Mixtures • Simple Mixtures – percentage range through to PPM / PPB levels • Hydrocarbon Mixtures • Gravimetric filling for accuracy of mixtureand traceable analysis • Laser mixtures • Rare Gases (Xenon, Krypton etc) / Bulk Gases (e.g. Chlorine) • Medical Reference Gases Generally NOT Semi Conductor, Welding, Medical, Laser or Industrial uses

5. Varied Applications • Oil, Gas and Petrochemical • Analytical Gases – carrier gases and calibration gases. • MRI / Super conductivity • Laboratory and Research • Environmental Compliance and Monitoring • Food and Beverage preparation • Safety Testing and Calibration • Engine Emission and Air Monitoring Testing • Lighting • Medical Device Calibration + many others

6. Tier One Players Currently in Special Gases within MENA Air Products Linde Air Liquide Praxair

7. Market Size • Almost impossible to define and evaluate. Best to evaluate niches and industry applications • Generally estimated at 5-10% the value of the industrial gas of each major player • Key markets • KSA largest, huge potential throughout GCC and MENA

8. Investment in MENA • Tier one companies investing heavily into industrial gases in the region: • Air Separation Units • CO2 manufacture • Argon production • Acquisition • Limited investment into Special Gas production

9. Welcome Growth of ReputableLocal Players into the MENA market including: • Abdullah Hashim (AHG) • Buzwair • Bristol Special Gases / StG • NIGP • Gulf Cryo • EIGC

10. Challenges for the Spec Gas Industry in MENA to address Customer Service Levels Logistics Pricing Safety and Quality

11. Customer Service LevelChallenges • Service levels offered by some MENA Spec Gas companies are sub-optimal • Majority of Special Gas mixtures are imported from outside the region (Europe or USA) giving long lead times • Time zone / working week issues with Europe / USA responses • Trading / Intermediary companies • Claim local supply / repackaging • Often low quality sourced product • Limited technical knowledge

12. Logistics Challenges • Cross border trade – border delays and fee complexity adding to delays and price • Difficulty in obtaining and understanding the requisite permits and approvals for producing, shipping and storing gas country by country • Bureaucracy

13. Pricing • Purchasers treat Special Gases as a commodity – therefore price driven down • Customer needs education on placing a value on quality • Imported products have higher costs • No rental charges - leads to cylinder loss and there is little understanding of the asset value in prices offered in the market • Traders, with little or no technical knowledge, in danger of bringing down the value of the market through price trading

14. Safety and Quality • Non-reputable / short term companies • Questionable quality • Not manufactured to accepted industry standards • No legitimate traceability and safety data availability • Poor quality is an accident waiting to happen

15. Customer expectations on product quality, reliability and delivery continue to increase providing both a threat and an opportunity for Specialty Gas supplier companies.

16. Challenges for the Industry Successful Speciality Gas companies recognise that they must: • Adhere to “industry best practice” with regards to technical and safety standards • Offer an excellent, consistent and on-going customer service experience • Place a premium on training and developing a Logistics team that understand the rules and regulations with regards to Dangerous Goods Transportation • Educate the market place about the true value of quality

17. Future for Spec Gas in MENA • Major growth potential for Specialty Gas in the next 10 years. Driven by economic and infrastructural growth across the region • Greater requirements for specialist, niche products, greater traceability and improved technical expertise from the suppliers • Key drivers include, greater safety legislation and the freeing up of cross border trade • Financial and technical investment required in local advanced manufacturing / laboratory facilities

18. Questions